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Colorado Contracts and Regulations
Midterm Questions and Answers
Latest 2026
At closing of a property, who is most likely to pay the
discount points and loan origination fees?
A) Buyer and seller equally
B) Seller
C) Buyer
D) Lender Ans: The answer is buyer. The buyer typically
pays these fees. The seller may have given the buyer
some funds as a concession; however, since the fees show
on the buyer's settlement as a debit, they are considered
to be a buyer obligation.
The buyer must receive a Lead-Based Paint Disclosures if
the
A) property improvements were completed prior to
January 1, 1978.
B) fixtures were attached prior to January 1, 1978.
C) building permit was issued prior to January 1, 1978.
© 2025 All rights reserved
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D) certificate of occupancy was issued prior to January 1,
1978. Ans: The answer is building permit was issued
prior to January 1, 1978. The federal law requires the
disclosure if the property was built before January 1,
1978. Colorado law further defines the federal
requirement to disclose lead-based paint by defining the
date for compliance as building permits prior to January
1, 1978.
What form(s) may earnest money take?
A) Cash or good funds only
B) Cash or check only
C) Cash, check, or promissory note
D) Any form the seller will accept Ans: The answer is any
form the seller will accept. The seller may accept an offer
with any form of earnest money (or none at all).
In the residential Contract to Buy and Sell Real Estate,
which is TRUE regarding the financing language?
A) A broker may omit the financing terms and leave a
space for licensees to draft the terms that fit.
B) All financing provisions must be printed in every
contract.
C) The form may not be computer generated because it
would be too easy to change.
© 2025 All rights reserved
Colorado Contracts and Regulations
Midterm Questions and Answers
Latest 2026
At closing of a property, who is most likely to pay the
discount points and loan origination fees?
A) Buyer and seller equally
B) Seller
C) Buyer
D) Lender Ans: The answer is buyer. The buyer typically
pays these fees. The seller may have given the buyer
some funds as a concession; however, since the fees show
on the buyer's settlement as a debit, they are considered
to be a buyer obligation.
The buyer must receive a Lead-Based Paint Disclosures if
the
A) property improvements were completed prior to
January 1, 1978.
B) fixtures were attached prior to January 1, 1978.
C) building permit was issued prior to January 1, 1978.
© 2025 All rights reserved
, 2 | Page
D) certificate of occupancy was issued prior to January 1,
1978. Ans: The answer is building permit was issued
prior to January 1, 1978. The federal law requires the
disclosure if the property was built before January 1,
1978. Colorado law further defines the federal
requirement to disclose lead-based paint by defining the
date for compliance as building permits prior to January
1, 1978.
What form(s) may earnest money take?
A) Cash or good funds only
B) Cash or check only
C) Cash, check, or promissory note
D) Any form the seller will accept Ans: The answer is any
form the seller will accept. The seller may accept an offer
with any form of earnest money (or none at all).
In the residential Contract to Buy and Sell Real Estate,
which is TRUE regarding the financing language?
A) A broker may omit the financing terms and leave a
space for licensees to draft the terms that fit.
B) All financing provisions must be printed in every
contract.
C) The form may not be computer generated because it
would be too easy to change.
© 2025 All rights reserved
